However, despite being one of 134 companies now participating in FTX’s bankruptcy, the Japanese subsidiary has been working on a cash-back plan for clients.
The Japanese subsidiary of cryptocurrency exchange FTX has devised a plan to continue processing withdrawal requests after it was determined that its clients’ assets will not be affected by the bankruptcy proceedings currently underway by the exchange. FTX cryptocurrency exchangewhich has since ceased operations.
On December 1, the company provided an update saying it was able to certify that its clients’ assets “should not” be part of FTX Japan’s equity. This was due to the fact that Japanese regulations require cryptocurrency exchanges to keep customer money separate from their own assets.
Despite having completed the acquisition of Japanese cryptocurrency exchange Liquid on February 2 of this year, FTX Japan did not start operations until June of this year.
Japanese users of the exchange were the main target audience for this particular effort.
On the other hand, due to liquidity problems that its parent company was having in early November, withdrawals were banned at FTX Japan on November 8, just like at its parent company. This was the same situation that occurred at its parent company.
After that point, the company was listed as one of 134 companies that were included in the Chapter 11 bankruptcy petition that FTX Trading filed on November 11.
Since then, FTX Japan has said that re-enabling withdrawals is their main goal, and it appears they are aiming to do so by the end of 2022.
This would give them the opportunity to resume withdrawals for their clients, which is particularly important in light of the recent clarification that assets owned by FTX Japan clients are not considered part of the company’s equity.
According to FTX Japan, the company’s management is in ongoing discussions with the Japanese government’s regulatory bodies. In addition, they sent out the first draft of their plan to start the recalls, which gives the impression that there will be continued interaction “when crucial milestones are reached.”